The Discounted Cash Flow (DCF) valuation of Xinjiang Zhundong Petroleum Technology Co Ltd (002207.SZ) is 2.77 CNY. With the latest stock price at 7.55 CNY, the upside of Xinjiang Zhundong Petroleum Technology Co Ltd based on DCF is -63.4%.

Is 002207.SZ a buy or a sell?

Based on the latest price of 7.55 CNY and our DCF valuation, Xinjiang Zhundong Petroleum Technology Co Ltd (002207.SZ) is a sell. Selling 002207.SZ stocks now will result in a potential gain of 63.4%.

	Range	Selected
WACC / Discount Rate	5.4% - 8.5%	6.9%
Long-term Growth Rate	3.0% - 5.0%	4.0%
Fair Price	1.41 - 21.01	2.77
Upside	-81.4% - 178.3%	-63.4%

7.55 CNY

Stock Price

2.77 CNY

Fair Price

REVENUE & EXPENSES

CAPEX

D&A

WORKING CAPITAL

TERMINAL VALUE

002207.SZ DCF Valuation: Revenue & Expenses Forecast

(CNY in millions)		Projections

	12-2024	12-2025	12-2026	12-2027	12-2028	12-2029

Revenue	342	248	259	272	278	283
% Growth	26%	-28%	5%	5%	2%	2%

Cost of goods sold	(331)	(228)	(227)	(226)	(219)	(212)
% of Revenue	97%	92%	87%	83%	79%	75%

Selling, G&A expenses	(21)	(15)	(16)	(17)	(17)	(18)
% of Revenue	6%	6%	6%	6%	6%	6%

Research & Development	0	0	0	0	0	0
% of Revenue	0%	0%	0%	0%	0%	0%

Net interest & other expenses	(5)	(4)	(4)	(4)	(4)	(5)
% of Revenue	2%	2%	2%	2%	2%	2%

Tax expense	0	(0)	(0)	(1)	(1)	(1)
Tax rate	-2%	2%	2%	2%	2%	2%

Net profit	(16)	0	12	24	36	48
% Margin	-5%	0%	5%	9%	13%	17%